TaxTMI 
TaxTMI 
2015 (4) TMI 1349
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....arter following the receipt of the completion certificate. 2. Mr. N.K. Poodar learned Senior Advocate for the writ petitioners submit that, the writ petitioners are not challenging the annual valuation for the relevant quarter. The writ petitioners being entitled to rebate in accordance with Section 171(5) of the Kolkata Municipal Corporation Act, 1980 must be given such rebate. The writ petitioners have purchased a flat. The completion certificate of such flat is dated December 31, 2005. Referring to Section 171(5) of the Act of 1980 it is submitted that, a newly constructed building becomes assessable for property tax from the quarter following the date of issue of the occupancy certificate. The writ petitioners did not receive the occupancy certificate dated December 31, 2005 on the same day. There is nothing on record to demonstrate that, the occupancy certificate dated December 31, 2005 has been served upon the writ petitioners on the date of the occupancy certificate. The words "the date of issue" has to be read to mean "served". On the interpretation of the word "issued" Mr. Poddar relies upon 1975 Volume 99 Income Tax Reports page 581 (SC) (Commissioner of Wealth Tax v. ....
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....td.), 1981 Volume 131 Income Tax Reports page 597 (Varghese (K.P.) v. Income-tax Officer), 1994 Volume 208 Income Tax Reports page 649 (SC) (C.W.S. (India) Ltd. & Ors. v. Commissioner of Income-tax), 2001 Volume 247 Income Tax Reports page 192 (SC) (K. Govindan & Sons v. Commissioner of Income-tax), All India Reporter 1997 Supreme Court page 2239 (Jagdish Singh v. Lt. Governor, Delhi & Ors.) and All India Reporter 1997 Supreme Court page 1006 (Sultana Begum v. Prem Chand Jain). 7. Mr. Poddar contends that, the date given on the completion certificate cannot be the date of the "issue" of the completion certificate unless it is demonstrated that the assessee has been served with the completion certificate on the date given on the completion certificate. The date of issue of a completion certificate must hold to be the date on which the completion certificate has been received by the assessee. Any other interpretation of the word "issue" would lead to absurdity. In support of such proposition he relies upon 2008 Volume 7 Supreme Court Cases page 502 (SC) (Union of India v. Ranbaxy Laboratories Ltd. & Ors.), 2008 Volume 301 Income Tax Reports page 309 (SC) (R & B Falcon (A) Pty. Ltd....
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....itioners were served with a hearing notice proposing to fix annual value of such flat with effect from the third quarter 2004-2005. The hearing Officer had fixed the annual value. The rate card dated September 22, 2009 was issued to the writ petitioner. Such rate card was set aside by this Hon'ble Court in W.P. No. 35 of 2010 by an Order dated February 2, 2010. The matter was remanded to the Corporation authorities by such order. The Corporation authorities were directed to determine the valuation afresh. The Hearing Officer of the Corporation authorities took up the hearing for fixation of annual valuation. 13. The writ petitioners claim that an Order dated March 27, 2012 was passed by the Hearing Officer. The writ petitioners claim that they were not served with such order. The Corporation authorities have used an affidavit in these proceedings. The Corporation authorities have also not disclosed the Order dated March 27, 2012. Such order of the Hearing Officer not being produced by the Corporation authorities despite the averment of the writ petitioners that they did not receive a copy of such order, such Order dated March 27, 2012 is quashed. 14. The writ petitioners ....
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....at treating each flat as a separate unit has been held in Lake Co-operative Housing Society Ltd. & Ors. (supra). 20. The word "building" is defined in Section 2(5) of the Kolkata Municipal Corporation Act, 1980. The same is as follows:-- "(5) "building" means a structure constructed for whatsoever purpose and of whatsoever materials and includes the foundation, plinth, walls, floors, roofs, chimneys, fixed platforms, verandas, balcony, cornice or projection or part of a building or anything affixed thereto or any wall (other than a boundary wall less than three meters in height) enclosing or intended to enclose any land, signs and outdoor display structures but does not include a tent, samiana or tarpaulin shelter." 21. The definition of building appearing in the Kolkata Municipal Corporation Act, 1980 is an inclusive definition and allows an interpretation that a part of the building could be a building for the purposes of imposition of liability to pay rates and taxes and assessment of liability to pay thereof. In fact, the Kolkata Municipal Corporation authorities have assessed property tax payable by the occupants occupying a part of the building. The writ petiti....
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....hich reduces one of the provisions as a "dead letter" or "useless lumber" is not harmonious construction. (5) To harmonize is not to destroy any statutory provision or to render it otiose." 26. In Ranbaxy Laboratories Ltd. & Ors. (supra), R & B Falcon (A) Pty. Ltd. (supra), A.N. Roy, Commissioner of Police & Anr. (supra), Dr. Sattur's Sushrushalaya Nurshing Home & Anr. (supra) and Gian Chand Ashok Kumar and Company & Ors. (supra) it has been held that in construing a provision of an Act, a situation giving rise to anomaly and absurdity must be avoided. 27. Ajax Products Ltd. (supra) and S. Sundaram Pillai & Ors. (supra) deals with the function of a proviso in a section. In Ajax Products Ltd. (supra) it has been held as follows:-- "The function of a proviso has been considered by this court in Commissioner of income-tax v. Indo-Mercantile Bank Ltd. It is neatly summarized in the headnote thus: "The proper function of a proviso is that it qualifies the generality of the main enactment by providing an exception and taking out as it were, from the main enactment, a portion which, but for the proviso, would fall within the main enactment. Ordinarily,....
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.... 29. Sub-section (5) of Section 171 of the Act of 1980 is as follows:-- "(5) Where a newly constructed building is used exclusively for residential purposes, a rebate of twenty-five percent in the property tax as determined under sub-section (2) shall be allowed for the first three years from the quarter following the date of issue of initial the occupancy certificate under the provisions of this Act: Provided that such rebate shall not be allowed for old buildings which have been redeveloped through alterations or additions: Provided further that such rebate shall be allowed in respect of such building in so far as it is a single unit of assessment under this Chapter." 30. There are two provisos in sub-section (5) of Section 171 of the Act of 1980. The first proviso mandates that no rebate shall be allowed for old buildings which have been redeveloped through alterations or additions. The fact of this case does not demonstrate that an old building has been redeveloped through alterations or additions. A new building is under consideration in this case. The first proviso to Section 178(5) of the Act of 1980 therefore has no manner of application in t....
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....ion that the completion certificate dated December 31, 2005 was served upon the developer in January 2006. This fact has not been denied in the affidavit-in-opposition used on behalf of the Corporation authorities. Therefore, the completion certificate was served in January 2006 and not on the date appearing in the completion certificate. 35. The point of contention is the meaning of the words "the date of issue" used in Section 171(5) and Section 178(5) of the Act of 1980. In the facts of the case, what would be the date of issue of the initial occupancy certificate? The occupancy certificate is dated December 31, 2005. According to the writ petitioners the date of issue of the completion certificate should be read to mean the date on which the completion certificate has been served on the writ petitioners and not the date of the issue appearing on the completion certificate. 36. In Kundan Lal Behari Lal (supra) the word "issued" occurring in Section 18(2) of the Wealth Tax Act came up for consideration. It has been held that the word "issued" should be read to mean "served". 37. In Kundan Lal Behari Lal (supra) and Corporation of the City of Nagpur (supra) it has been no....